South Korea digital VAT update
- 24 June 2015 | Richard Asquith
The South Korean tax authorities have provided further guidance to foreign providers of electronic services to consumers ahead of the imposition of digital Korean VAT on 1 July 2015.
Korean VAT returns
Registrations by such foreign providers will by required by the NTS, and must be submitted within 20 days of commencement of taxable supplies. VAT returns will be due on a quarterly basis. VAT returns must be filed by the 25th of the month following the reporting period.
Korean VAT on electronic service
Under the Korean VAT Act, Articles 53, the service subject to the new VAT rules include services provided across the internet or other electronic networks including: apps, games, video, films, music, software, e-documents etc.
Korea is following the EU 2015 VAT changes on e-services this year. South Africa brought foreign providers of e-services into its VAT net last year. Japan has the same plans for Consumption Tax in 2015.